As the indexes and leading stocks get further extended, the likelihood of a pullback intuitively increases. Given how far things have come since the early-October lows, a reasonable excuse can easily trigger some selling as we saw yesterday. Then, it was reported that the U.S. would not be rolling back previously imposed tariffs on China now that the Phase One deal was in the books.
A rally this morning, likely due to the signing of the Phase One agreement, ran out of gas, resulting in an above-average volume churning day for the NASDAQ Composite Index. Meanwhile, the S&P 500 and the Dow both made new closing highs but also churned around a bit. Today’s action on the NASDAQ follows a high-volume churning day yesterday.
The rest of this report is available for Gilmo Report Members only.The full report will be available 45 days after it is posted. For immediate access: login
Gil Morales & Company, LLC (“GMC”), 8033 Sunset Boulevard, Suite 830, Los Angeles, California, 90046. GMC is a Registered Investment Adviser. This information is issued solely for informational purposes and does not constitute an offer to sell or a solicitation of an offer to buy securities. Information contained herein is based on sources which we believe to be reliable but is not guaranteed by us as being accurate and does not purport to be a complete statement or summary of available data. Past performance is not a guarantee, nor is it necessarily indicative, of future results. Opinions expressed herein are statements of our judgment as of the publication date and are subject to change without notice. Entities including but not limited to GMC, its members, officers, directors, employees, customers, agents, and affiliates may have a position, long or short, in the securities referred to herein, and/or other related securities, and may increase or decrease such position or take a contra position. Additional information is available upon written request. This publication is for clients of Gil Morales & Company, LLC. Reproduction without written permission is strictly prohibited and will be prosecuted to the full extent of the law. ©2008-2019 Gil Morales & Company, LLC. All rights reserved.